Gibraltar Business Capital recently renewed its relationship with Direct Communication Solutions (DCS), with a new $1 million accounts receivable credit facility to help the machine-to-machine provider of wireless services and products transition into higher-margin products.
DCS, a San Diego based maker of embedded modules, routers, and GPS systems, needed financing to help it stay ahead of commoditization. As has been witnessed in many other technologies, pricing leverage was falling as products became more ubiquitous. DCS’s volumes remained strong, but declining pricing levels were hurting sales and cash flows. The company needed a factor that could help it handle the transition and called on a trusted partner, Gibraltar, who had provided access to capital and exceptional service once before.
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